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Thursday, June 16, 2011

The Arkansas Supreme Court today affirmed a Garland Circuit Court ruling that investment property owned by the Arkansas Teacher Retirement System — in this case a Hot Springs shopping center— is not exempt from the property tax.

The retirement system argued that it should be exempt because proceeds supported what is essentially a tax-exempt government entity, the agency that manages teacher retirement. It argued the property was used "exclusively for public purposes" — paying public retirement benefits.

The court didn't buy it. It cited a line of cases — investments by a public hospital and school district, for example — in which it had said the beneficiaries of the investment weren't sufficient ground for a tax-exemption. The court rejected an argument that the system investment was analagous to land purchased under constitutionally authorized industrial development bond schemes, where the land is owned by the public and exempt from taxes. This case did not involve such bonds, the court said. The court also dismissed an argument that a state statute prohibited taxation of teacher retirement property investments. The statute "must yield to the Constitution," the court said.

The retirement system has had disputes on other parcels of Arkansas land on the taxing issue, now resolved in favor of those seeking property taxes.

ALSO AT THE SUPREME COURT TODAY: Little Rock lawyer Gene Sayre made oral arguments today on the lawsuit challenging the constitutional amendment — since approved by voters — that raised the consumer interest limit, took off a limit on government bonds and provided for bond finanacing of energy projects. Sayre has argued that the legislature rolled up too many unrelated subjects in one proposal, but a lower court rejected the argument. If practical politics matter with this court, hard to see this one getting overturned. But who knows?

More by Max Brantley

Gov. Asa Hutchinson has responded sharply to the lawsuit challenging the legality of the state's new work requirement for Medicaid coverage and also criticizing the online-only reporting requirement. His statement:

The latest numbers from the Department of Human Services show thousands more people did not meet the reporting requirement on work hours in July to meet Medicaid eligibility standards.

Vincent Tolliver, a candidate for Little Rock, mayor, has written legislators asking the Senate Education Committee to ask Education Commissioner Johnny Key to testify about problems encountered by parents on Monday, the first day of school in the state-run Little Rock School District.

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It was not even 24 hours ago that Sophia Said, director of the Interfaith Center; City Director Kathy Webb and others decided to organize a protest today of Donald Trump's executive order that has left people from Muslim countries languishing in airports or unable to come to the US at all — people with visas, green cards,a post-doc graduate student en route to Harvard, Google employees abroad, families. I got the message today before noon; others didn't find out until it was going on. But however folks found out, they turned out in huge numbers, more than thousand men, women and children, on the grounds of the state Capitol to listen to speakers from all faiths and many countries.

If he can't kill it outright, Donald Trump will do all he can to cripple Obamacare. Vox has detailed reporting on deep cuts in federal spending that support nonprofit agencies that help people sign up for coverage under the Affordable Care Act.

Gov. Asa Hutchinson and 2nd District U.S. Rep. French Hill have refused to participate in TV debates scheduled in September.

Vincent Tolliver, a candidate for Little Rock, mayor, has written legislators asking the Senate Education Committee to ask Education Commissioner Johnny Key to testify about problems encountered by parents on Monday, the first day of school in the state-run Little Rock School District.

A lawsuit was filed today in the federal court for the District of Columbia challenging Arkansas's work requirement for many Medicaid recipients.

Rep. John Lewis, the civil rights legend, will visit Little Rock Sunday afternoon for a fund-raiser for state Rep. Clarke Tucker, the Democratic candidate for 2nd District Congress against Republican Rep. French Hill.